DISSOLUTION OF PARTNERSHIP

Partners Loan Account is :-

• Personal Account

• Real Account

• Nominal Account

6. Liabilities to third parties in case of dissolution of partnership firm do not include : -

• Reserves

• Credit Balance of P&L Account

• Partners loan

• All of the Above.

When Realisation expenses are borne& paid by the same partner :-

• (a) No entry will be passed

• (b) Realisation Account will be debited ,CashAccount will be credited

• (c) None of above

Partners loan Account is not transferred to :-

• Bank Account

• Realisation Account

• (c) Partners loan Account

Dissolution of the Partnership does not include :-

• Admission of a partner

• Death of a partner

• Change in Profit-Sharing Ratio

• Dissolution of firm

Accumulated Profit /Loss are transferred to Partner’s Capital Account in case of dissolution in their

• New Ratio

• Gaining Ratio

• Profit Sharing Ratio

• (d) None of the above

Unrecorded Asset taken over by a Partner at the time of dissolution of the firm is .................... to his Capital Account.

• Debited

• Credited

Workmen Compensation Reserve appears at Rs.1,00,000 in the Balance Sheet and Claim against Workmen Compensation is of Rs.1,10,000. With how much amount will Realisation Account be debited at the time of making payment of this claim?

• Rs.1,00,000

• Rs.1,10,000

• Rs.10,000

• Claim is never paid at the time of dissolution.

A debtor of Rs.5,000, already transferred to Realisation Account agreed to pay the Realisation Expenses of Rs.4,500 in full settlement of his claim. Choose the correct option:

• Realisation Account will only be debited by Rs.4,500.

• No Entry will be passsed.

The firm had a Debit balance of Profit and Loss Account of Rs.15,000 at the time of Dissolution of Firm. Partner's Capital Accounts will be ................... by Rs.15,000.

• Debited

• Credited